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					This report is no longer current. Please refer to the CANSTAR CANNEX website for the most recent star ratings report on this topic.




                                CAR INSURANCE STAR RATINGS

             Report No. 1                                                                        September 2007

            IN THIS INAUGURAL REPORT WE EXPLORE …
                    Ride the internet wave to save
                    Car insurance comparison a first for Australia
                    Cash vs Crash – a look at claims
                    Who’s in the driver’s seat?
                    What’s the best policy for me?
                    Overall winners across the country
                    State-by-state breakdown: some surprises
                    Profile winners: which one fits you?
                                                                       ED
                                                             ED

            RIDE THE INTERNET WAVE TO SAVE
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            As consumers flock online in greater numbers than ever before to research and purchase, the
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            car insurance industry has been one of the most obvious beneficiaries of this new way of doing
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            business. The internet is now well and truly driving insurance sales growth and renewals, with
            research experts, ACNielsen, reporting almost half (47%) of internet users accessing insurance
            information online in the past six months. Over half (52%) stated they had purchased an
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            insurance policy online during the same timeframe.

            In recent months CANNEX has surveyed the car insurance market to include as many
            companies as possible in our research. Our criteria were that insurers must offer online quoting
            facilities and offer insurance to most drivers with regular cars. At the time of selection, twenty-
            three insurers met the requirements. Since then we have seen a number of new names enter
            the market. Bingle, Real Insurance and eCar Insurance have all recently joined the ranks.
            Although we have not included these brands in our first star ratings we are already looking
            forward to our next ratings results in 6 months time with the new players included. With such a
            hive of activity in car insurance in Australia right now, the CANNEX car insurance star ratings
            have come at the right time to help to clear some of the confusion.

                                            ONLINE           Many car insurance providers offer online discounts
                     INSURER               PURCHASE          of up to 15% but, oddly enough, not all are cheaper
                                           DISCOUNT          online. CANNEX research findings suggest that
             Budget Direct                           15%     some discounted online premium offers are actually
             GIO                                     15%     more expensive than other brands available by
             Allianz                                 10%     phone or at a branch. So it’s very important shop
             ING                                     10%     around to get the very best savings on offer.
             AAMI                                     $50
             Commonwealth Bank                        5%     The car insurance market is constantly evolving;
             National Australia Bank                  5%     new insurers entering the market and new discounts
                                                             being offered by established brands are changing

            YOUR GUIDE TO PRODUCT EXCELLENCE
every week. CANNEX has priced its premiums according to the discounts that were available at
the time of quoting, however, to ensure that the information contained in this report is as up to
date as possible, we have revised our reporting of the discounts offered to reflect the current
market place. Every six months CANNEX will repeat its shadow shopping exercise to ensure
that changes in the market place are reflected in our star ratings. We will also review our
methodology to ensure it remains aligned to the latest car insurance trends and needs of
Australian consumers.

The popularity of comparing and buying car insurance online has seen the emergence of a
number of new players in the car insurance game. A decade ago, this product was the domain of
premier Australian brands such as NRMA Insurance, AAMI and GIO. These days less familiar
brands such as Just Car, Budget Direct and Cash Back are in on the act. The market can be
likened to the mortgage industry back when Aussie and Wizard Home Loans entered the picture,
heralding the arrival of non-bank lenders in what was traditionally the domain of mainstream
banks. With the whole car insurance sector wide open and fiercely competitive, consumers are
encouraged to compare brands and products, familiar and unfamiliar. Consumers who shop
around using the CANNEX car insurance star ratings will save a bundle, while making sure they
get key features they need along the way.

CAR INSURANCE COMPARISON A FIRST FOR AUSTRALIA

                                                        ED
This is the largest consumer research initiative CANNEX has ever undertaken. In order to
compare and rate car insurance policies for the first time ever, CANNEX has completed an
exhaustive shadow shopping exercise, covering 23 comprehensive policies and obtaining over
                                           ED
10,000 individual quotes across 6 states. We have built Australia’s largest car insurance product
database with more than 80 different features covered.
                                                                  NSW QLD      SA   TAS    VIC   WA
                                          C


                                              AAMI
                                      R



                                              Allianz
         The table, at right, shows
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                                              AON
           each insurer and the
               states in which                Bendigo Bank
              they offer cover
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                                              Budget Direct
            for motor vehicles:               Cashback
                                              CGU
                                              Commonwealth Bank
                                              GIO
                                              ING
                                              Just Car
                                              nab
                                              NRMA Insurance
                                              Ozicare
                                              RAC
                                              RACQ
                                              RACV
                                              SGIC
                                              SGIO
                                              St George Bank
                                              SUNCORP
                                              Western QBE
                                              Westpac

   YOUR GUIDE TO PRODUCT EXCELLENCE                                                    2
To estimate the cost of insurance for consumers, our researchers shopped around as if they
were typical Australian consumers falling into representative profiles. Our quotes cover eight
different driver profiles in several post codes for each capital city in order to represent our
diverse driver landscape 1 . This study is by far the largest comparison ever done in Australia.
The depth of research is way more than many individuals could achieve on their own, and
provides a short cut to product comparison. We intend to repeat this study every six months so
consumers continue to have a simple and reliable means of keeping up to date with what
insurers are offering and so they can choose the best value policy every time.

CANNEX decided to rate comprehensive car insurance products because Australians are
comparing these products more frequently than ever. According to ACNielsen research, for the
first time internet sales are taking away from sales made over the telephone. Also, consumers
who shop using the internet are more inclined to obtain three online quotes instead of just two
for those who use the phone. 2

CANNEX online comparison tools can help consumers to narrow down which policies to
investigate whether they pursue internet or phone quotes, compared against indicative star
ratings premium prices based on CANNEX’s major independent survey.


CASH vs CRASH – A LOOK AT CLAIMS
                                                                     ED
Of course, we all hope that we won’t need to claim on our car insurance but with so many drivers
on the road, accidents happen. In Australia in 2005-2006 there were almost 1.5 million motor
                                                        ED
insurance claims made, 12.6% of all policies3. The handling of claims is therefore going to be
very important to consumers when they select an insurer for their car.
                                                       C


Information on how well a particular insurer handles claims is very subjective and thus difficult to
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collect and analyse. CANNEX has not included claims handling in its assessment of insurers
because of this difficulty however consumers should remember that price is not the only factor
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they should consider when choosing an insurer.
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WHO’S IN THE DRIVER’S SEAT?

Not all drivers are the same and no one insurance policy will be the best fit for everyone. Just
moving to a different suburb makes a difference to which policy will suit you. This is where the
CANNEX profiles come in handy. We have identified eight unique driver profiles that reflect the
majority of the spectrum of drivers (see below). Each profile has different expectations of their
car insurance policy and so the star ratings methodology assigns different importance to fees
and features for each profile. Six different Australian states are included in this analysis; New
South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia. We
selected two cars for each profile that were the most representative of the likely vehicles being
driven.




1
 In this study CANNEX research reaches across six states. ACT drivers are considered as part of NSW in the context of our
postcode selection, though the NT is not yet covered at this stage.
2
    “The Internet drives insurance industry sales growth and renewals”, by ACNielsen, 27 March 2007.
3
    Source: The Insurance Ombudsman Annual Review 2006


       YOUR GUIDE TO PRODUCT EXCELLENCE                                                                      3
CANNEX realises that not everyone will slot neatly into one of the driver profiles listed below.
There are bound to be those few who fall outside a category, for any number of reasons such as
an unusual driving record, a car that is not typical or a residential address that is considered
much higher or lower risk than the locations we evaluated. These individuals will be best served
going direct to the insurer of their choice or going through an insurance broker. Our results,
however, will be very helpful for the bulk of Australians in the following profiles:


Profiles 1 & 2         Young Drivers – Male under 25, Female under 25

       For drivers at the entry point of car insurance, we took a realistic approach and set the
       car’s value at under $27,000. We gave driver ratings of 4 and included one speeding
       ticket received within the last 12 months. From a car insurance point of view, the sex of
       young drivers can make a difference, with young males deemed a bigger risk, according
       to road crash statistics.


Profiles 3 & 4         Male Driver – mid-to-late 20s, Female Driver – mid-to-late 20s

       An accident-free driving record means these drivers, aged 25 to 29, have progressed to
       a rating 1. For our profile, we put this driver behind the wheel of a medium-priced car,
       valued under $35,000. As no-one under 25 will be driving this car, it’s ideal if looking for a
                                                        ED
       standard comprehensive policy with no extras. The difference in sex, while not as crucial
       as in the young, first-time drivers, is nevertheless of significance to some car insurance
                                             ED
       companies.
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Profile 5        Driver – over 30
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       As there are no young drivers to be considered with this profile, this male or female
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       benefits further from competitive prices. The driver in this profile qualifies for the full no-
       claim bonus and saves even more on annual premiums by covering minor incidents with
       his or her own money. The value of the car driven is under $45,000.
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Profile 6        Car Connoisseur – over 30

       No kids, at least not of driving age, and more disposable income mean this driver can
       afford a more expensive and desirable car. Sure, the car costs extra to insure but this
       driver qualifies for the full no-claim bonus. For our profile, we have selected the market
       value of the car driven by the car connoisseur to range from $45,000 to $75,000.


Profile 7        Family – with at least one young driver

       The stereotypical family consists of mum, dad and perhaps a son and daughter who are
       both aged under 25. The family wishes to insure a car, valued at under $45,000, for the
       entire household to drive.


Profile 8        Mature Drivers – over 60

       These long-time drivers are looking for a hassle-free policy which provides a few more
       features to make their lives easier, should they have to make a claim. Their car is valued
       at under $40,000 and there are no young drivers to complicate matters.


   YOUR GUIDE TO PRODUCT EXCELLENCE                                                         4
WHAT’S THE BEST POLICY FOR ME?
The best way to use CANNEX star ratings is by using the car insurance comparison is to decide
which profile fits you and tell us which state you live in. Our results will allow you to compare
indicative prices for the profile that best matches your situation.

To cut to the winning brands, the companies detailed below delivered the very best value for
money after we factored in key features needed for each profile around the country:

                 NSW          QLD           SA           TAS           VIC          WA
Young
                 NRMA         NRMA
Female                                     SGIC        Just Car     Just Car       SGIO
               Insurance    Insurance
Driver <25
Young Male       NRMA         NRMA
                                          Just Car     Just Car     Just Car       SGIO
Driver <25     Insurance    Insurance
Female
                 NRMA         NRMA
Driver                                      ING          ING         Allianz      Allianz
               Insurance    Insurance
25 - 29
Male Driver                   NRMA
               Westpac                      ING          ING       Cashback      Westpac
25 - 29                     Insurance

Drivers
               Westpac       Ozicare        ING
                                                      ED
                                                       Ozicare       Allianz      Allianz
30 - 59
                                            ED

               National     National                                             National
Car
               Australia    Australia       ING          ING           ING       Australia
Connoisseur
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                Bank         Bank                                                 Bank
Family with
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                             Budget       Budget       Budget                     Budget
Young            AAMI                                                 AAMI
                             Direct       Direct       Direct                     Direct
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Drivers
Mature          Budget                                 Budget
                            Cashback     Cashback                  Cashback      Cashback
Drivers         Direct                                 Direct
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OVERALL WINNERS ACROSS THE COUNTRY
After we added up strong performance by particular car insurance brands for each profile around
the country, some brands really stood out for their broad and deep value offer to consumers. In
this research survey we have awarded two types of gongs. The first is awarded at the individual
product level: after pricing premiums for all profiles in each capital city where the 23 brands are
offered, products are awarded three, four or five stars (the very best on offer). The second gong
is given at the national, state and profile level to reflect real product value in those areas. The
enormous variance in car insurance products offered to suit different consumer needs between
states and even within states dictated this to be the fairest approach.

Our national award winners are Budget Direct, Cashback and Allianz, and they won by having
the most number of first, second and third place rankings right around the country and for the
bulk of consumer profiles researched. CANNEX created population-based weightings across our
eight consumer profiles to make sure our winners were reaching the most consumers possible.
As you can see on the graph below, there is great variety in the amount of first, second and third
placings awarded to the major car insurers who operate in the national market.




   YOUR GUIDE TO PRODUCT EXCELLENCE                                                         5
The National Five Star winners are products that offer superior value for money for most
consumers in most states and profiles:


                                National 5 Star Awards
                       Combined Online Purchase Price and Great Features




                                                                                  3rd Place

                                                                                  2nd Place

                                                                                  1st Place




   Budget      Cashback      Allianz       Ozicare      NRMA        AAMI
   Direct                                            Insurance
                                                       /RACV/
                                                     SGIC/SGIO

                                                       ED
                                                ED
STATE-BY-STATE BREAKDOWN: SOME SURPRISES
Using the same methodology as the National Award but on a state basis, the insurer offering the
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best value across all profiles (which were weighted by their respective population size) was
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determined in each state. For state winners, the top scoring product in each state was chosen as
the winner.
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                                       STATE
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                                                           WINNER

                            New South Wales          NRMA Insurance
                            Queensland               Cashback
                            South Australia          ING
                            Tasmania                 Cashback
                            Victoria                 Allianz
                            Western Australia        Allianz


Quite apart from the relative strength of brands in each capital city location, CANNEX research
reveals a much more detailed picture of how different consumers fare within in each state and
between states. The table below highlights some key differences.

For example, the average national premium across all eight CANNEX profiles is $853. However
the average premium results by state are quite different: $1,430 in New South Wales; $917 in
Victoria; $753 in Queensland; $700 in both South Australia and West Australia; and $568 in
Tasmania. Sydneysiders may be surprised to learn that, based on CANNEX’s extensive national
research, they are paying $577 more than other urban drivers around Australia for comparable
car insurance policies. Sydney and NSW premiums are more expensive because the risk for
insurers is greater; a higher population density means more cars on the road and more
accidents or thefts which of course more claims for insurers. Sydney streets are certainly full of
   YOUR GUIDE TO PRODUCT EXCELLENCE                                                     6
cars and residents see this reflected in their premiums.

                       S ummary        State Results Across 8 CANNEX Profiles

                                                          Average Premium
                                                               vs. National     Potential Savings
                                    Average Premium                Average                     (1)
               NSW                 $          1,430.2                   68%    $            973.5
               VIC                 $            917.3                    8%    $            599.4
               QLD                 $            752.5                  -12%    $            560.3
               SA                  $            699.8                  -18%    $            468.5
               WA                  $            700.0                  -18%    $            456.0
               TAS                 $            567.5                  -33%    $            375.0
               National            $            852.9                    0%    $            572.1

               Notes: (1) Potential savings are the difference between the highest and lowest
               average premiums across all brands available in the State.
                                                                                   Source: CANNEX




The following section of this report pulls apart our findings at a state level, by profile. The
                                                             ED
postcodes we have used for each state are based upon population density statistics so they
mostly center around the capital cities. Although the ACT has not been individually priced we
                                                 ED
have assumed that the premiums of the Canberra area are comparable with those of the
Sydney/NSW market.
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We list the minimum average, average and maximum average for each profile and for the state
overall. The “Minimum Average Premium” is the average premium offered by the cheapest
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priced insurer for that state and profile. The “Average Premium” is the average cost of insurance
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for that profile in that state. Finally the “Maximum Average Premium” is the average premium
offered by the most expensive priced insurer for that state and profile.
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RESULTS – NEW SOUTH WALES
NSW premiums are expensive compared to the rest of the country because of the higher risk
that comes as a results of the greater population - on average a NSW premium is 68% higher
than the national average. Young people and families with young drivers stand to save the most
by shopping around.
• If all NSW consumers used star ratings to find the very best indicative premium levels based
    on CANNEX’s online research, they would save 45% on their car insurance.
• The average potential for savings available in NSW is $974.
• If you’re a young man under the age of 25, you could save up to $1,879 – surely worth the
    time and effort!




   YOUR GUIDE TO PRODUCT EXCELLENCE                                                                  7
                                        Minimum                  Maximum
                                                      Average             Potential Potential
   State   Driver Profile                Average                  Average
                                                     Premium              Saving $ Saving %
                                        Premium                  Premium
   NSW     Young Female Driver <25           $858      $1,694       $2,643      $1,785          68%
   NSW     Young Male Driver <25             $899      $1,775       $2,777      $1,879          68%
   NSW     Female Driver 25 - 29           $1,057      $1,260       $1,708       $650           38%
   NSW     Male Driver 25 - 29             $1,102      $1,302       $1,708       $606           35%
   NSW     Drivers 30 - 59                   $894      $1,074       $1,258       $364           29%
   NSW     Family with Young Drivers         $878      $1,607       $2,231      $1,353          61%
   NSW     Car Connoisseur                 $1,387      $1,740       $2,132       $746           35%
   NSW     Mature Drivers                    $927      $1,078       $1,332        $406          30%
           Average for all profiles        $1,000      $1,430       $1,974       $974           45%



RESULTS – VICTORIA
Victorian drivers are, on average, paying less than their New South Wales counterparts but
premiums in Victoria are, on average, 8% higher than the national average.
• If Victorian consumers used star ratings to find the very best indicative premium levels based
    on CANNEX’s online research, they would save 43% on their car insurance.
                                                      ED
• The average potential for savings available in Victoria is almost $600.
• Young Female and Male Drivers, and Families with Young Drivers could all save over 50%
                                           ED
    on their car insurance – this means they could be paying more than twice as much as they
    need to!
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                                       Minimum                  Maximum                  Potential
                                                    Average                  Potential
   State   Driver Profile               Average                  Average                  Saving
                                                    Premium                  Saving $
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                                       Premium                  Premium                         %

   VIC     Young Female Driver <25         $793       $1,098      $1,763        $971            55%
                            SU




   VIC     Young Male Driver <25           $821       $1,180      $1,910       $1,089           57%
   VIC     Female Driver 25 - 29           $666        $802        $942         $276            29%
   VIC     Male Driver 25 - 29             $703        $834       $1,045        $341            33%
   VIC     Drivers 30 - 59                 $580        $691        $803         $224            28%
   VIC     Family with Young Drivers       $628       $1,013      $1,553        $925            60%
   VIC     Car Connoisseur                 $851       $1,059      $1,517        $666            44%
   VIC     Mature Drivers                  $536        $712        $840         $304            36%
           Average for all profiles        $697        $917       $1,297        $599            43%



RESULTS – QUEENSLAND
Queenslanders do fairly well compared to the national average premium – the average is $753
which is 12% below the national $853 finding.
• The average potential saving of 49% shows that Queenslanders can benefit enormously
   from shopping around.
• The average potential for saving available in Queensland is $560.
• Young drivers can benefit the most by shopping around, with the potential to save between
   $850 and over $900.




   YOUR GUIDE TO PRODUCT EXCELLENCE                                                         8
                                         Minimum               Maximum                Potential
                                                    Average               Potential
  State    Driver Profile                 Average               Average                Saving
                                                    Premium               Saving $
                                         Premium               Premium                       %

  QLD      Young Female Driver <25          $501       $827      $1,354       $853          63%
  QLD      Young Male Driver <25            $541       $867      $1,466       $925          63%
  QLD      Female Driver 25 - 29            $545       $665       $896        $351          39%
  QLD      Male Driver 25 - 29              $558       $682       $896        $338          38%
  QLD      Drivers 30 - 59                  $486       $583       $745        $259          35%
  QLD      Family with Young Drivers        $525       $836      $1,252       $727          58%
  QLD      Car Connoisseur                  $769      $1,010     $1,363       $594          44%
  QLD      Mature Drivers                   $439       $612       $874        $435          50%
           Average for all profiles         $546       $753      $1,106       $560          49%



RESULTS – SOUTH AUSTRALIA
South Australians pay, on average, 18% less for their insurance but the range of savings
available across all profiles is tighter than for the larger states.
• The average potential saving for South Australian drivers is 47%.

                                                     ED
• The potential saving for Car Connoisseurs in South Australia is greater than that for the other
   states because a wider range of premiums are offered showing less consistent pricing for
   this profile.
                                           ED
• Most drivers in South Australia should be able to keep their insurance under the magic
   $1000 mark if they shop around.
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                                       Minimum              Maximum                 Potential
                                                  Average               Potential
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State     Driver Profile                Average              Average                 Saving
                                                  Premium               Saving $
                                       Premium              Premium                        %

SA        Young Female Driver <25         $581       $868      $1,231       $650        53%
                            SU




SA        Young Male Driver <25           $625       $904      $1,333       $708        53%
SA        Female Driver 25 - 29           $458       $591       $728        $270        37%
SA        Male Driver 25 - 29             $475       $609       $760        $286        38%
SA        Drivers 30 - 59                 $392       $516       $696        $304        44%
SA        Family with Young Drivers       $537       $768      $1,097       $560        51%
SA        Car Connoisseur                 $576       $831      $1,179       $604        51%
SA        Mature Drivers                  $419       $556       $787        $367        47%
          Average for all profiles        $508       $700       $976        $469        47%



RESULTS – WESTERN AUSTRALIA
WA has some of the cheaper premiums in the country, 18% cheaper in fact than the national
average.
• On average Western Australians could save $456 each year on premiums.
• Young drivers in WA who shop around could be paying as little as older, more experienced
   drivers, while potentially saving over $700.
• Mature drivers in WA have a narrower savings range than their counterparts around the
   country but a potential saving of $276 is still a healthy margin.




   YOUR GUIDE TO PRODUCT EXCELLENCE                                                     9
                                         Minimum                 Maximum                  Potential
                                                     Average                  Potential
 State   Driver Profile                   Average                 Average                  Saving
                                                     Premium                  Saving $
                                         Premium                 Premium                         %

 WA      Young Female Driver <25              $466        $793      $1,174        $708         60%
 WA      Young Male Driver <25                $495        $829      $1,272        $777         61%
 WA      Female Driver 25 - 29                $464        $616       $749         $284         38%
 WA      Male Driver 25 - 29                  $513        $636       $749         $236         31%
 WA      Drivers 30 - 59                      $405        $542       $716         $311         43%
 WA      Family with Young Drivers            $567        $784      $1,053        $486         46%
 WA      Car Connoisseur                      $648        $891      $1,217        $569         47%
 WA      Mature Drivers                       $466        $550       $742         $276         37%
         Average for all profiles             $503        $700       $959         $456         46%



RESULTS - TASMANIA
Tasmanians do quite well compared to their mainland counterparts, based on CANNEX
research. The average premium across all profiles is just $568, a massive 33% discount to other
capital city prices. This reflects the lower levels of congestion, better traffic and other risk factors.
• Although Tasmanian drivers are already ahead of the rest of the country, on average they
   could still save $375 each year.                       ED
• Despite the cheaper premiums, Young Drivers around the country could get their car
                                               ED
   insurance for less than a Young Tasmanian Driver who is not getting the best deal available
   to them.
• Young, first-time Drivers, Families with Young Drivers, Car Connoisseurs and even Mature
                                              C


   Drivers are paying close to twice as much as they need to.
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                                        Minimum                  Maximum                  Potential
                                                     Average                 Potential
 State   Driver Profile                  Average                  Average                  Saving
                                                     Premium                 Saving $
                                        Premium                  Premium                         %
                          SU




 TAS     Young Female Driver <25             $504        $685       $1,008        $504        50%
 TAS     Young Male Driver <25               $504        $702       $1,092        $587        54%
 TAS     Female Driver 25 - 29               $419        $498        $591         $172        29%
 TAS     Male Driver 25 - 29                 $419        $510        $603         $184        31%
 TAS     Drivers 30 - 59                     $360        $425        $570         $210        37%
 TAS     Family with Young Drivers           $404        $591        $932         $529        57%
 TAS     Car Connoisseur                     $581        $714       $1,125        $544        48%
 TAS     Mature Drivers                      $331        $456        $601         $270        45%
         Average for all profiles            $440        $568        $815         $375        44%



PROFILE WINNERS – WHICH ONE FITS YOU?
The winners of the profile awards were calculated using a variation of the state methodology.
The different states were all given equal weighting because CANNEX deemed that for an insurer
to be said to offer good value for a particular driver profile across the nation, it was just as
important for them to be good value in the smaller states like Tasmania as it was in the heavy-
weight states like New South Wales.

Although only one insurer was to be chosen for each profile, in the case of Female Drivers aged
between 25 and 29 there was a tie between Allianz and ING so both were awarded this profile.


    YOUR GUIDE TO PRODUCT EXCELLENCE                                                         10
            PROFILE                          WINNER
 Young Female Driver <25                Just Car
 Young Male Driver <25                  Just Car
 Female Driver 25 - 29                  Allianz & ING
 Male Driver 25 - 29                    ING
 Drivers 30 - 59                        Allianz
 Family with Young Drivers              Budget Direct
 Car Connoisseur                        ING
 Mature Drivers                         Cashback


CANNEX’s methodology is outlined following this list of our 5 star winning products.


DISCLAIMER
To the extent that any CANNEX data, ratings or commentary constitutes general advice, this advice has been
prepared by CANNEX (Aust) Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your
individual investment objectives, financial circumstances or needs. Information provided does not constitute financial,
taxation or other professional advice and should not be relied upon as such. CANNEX recommends that, before you
make any financial decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure
Statement relating to the product should also be obtained and considered before making any decision about whether
to acquire the product.
                                                                 ED
Please refer to CANNEX’s FSG for more information at www.cannex.com.au.
                                                     ED
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    YOUR GUIDE TO PRODUCT EXCELLENCE                                                                      11
                     car insurance star ratings


All States
Text218:


All Profiles 5 Star Summary
                                                    Average     Total   Score Breakdown     Car Replaced if      Agreed or   Monthly Roadside
Product             Profile                                     Score                         Written-Off       Market Value Pmts -   Assist
                                                    Premium
                                                                                                                             no Extra
                                                                        Cost     Feature   Available   Age of                  cost
                                                                                                        Car


AAMI
Comprehensive Car   NSW Family with Young Drivers    $ 877.83   95.67   85.00     10.67                 12 m       Either      $        $

Comprehensive Car   VIC Family with Young Drivers    $ 628.42   95.67   85.00     10.67                 12 m       Either      $        $


Allianz Australia
SureCover Plus      VIC Drivers 30 - 59              $ 579.56   97.76   90.00     7.76                  24 m       Either      $        $

SureCover Plus      VIC Female Driver 25 - 29        $ 666.31   97.76   90.00     7.76                  24 m       Either      $        $

SureCover Plus

SureCover Plus
                    WA Drivers 30 - 59

                    WA Female Driver 25 - 29
                                                     $ 404.62

                                                     $ 464.44
                                                                97.76

                                                                97.76
                                                                         ED
                                                                        90.00

                                                                        90.00
                                                                                  7.76

                                                                                  7.76
                                                                                                        24 m

                                                                                                        24 m
                                                                                                                   Either

                                                                                                                   Either
                                                                                                                               $

                                                                                                                               $
                                                                                                                                        $

                                                                                                                                        $
                                                                 ED
Budget Direct
Comprehensive       NSW Mature Drivers >60           $ 926.50   95.13   80.00     15.13                 12 m       Either      $
                                                                C


Comprehensive       QLD Family with Young Drivers    $ 525.25   96.35   85.00     11.35                 12 m       Either      $
                                                          R



Comprehensive       SA Family with Young Drivers     $ 537.42   96.35   85.00     11.35                 12 m       Either      $
                                                    PE




Comprehensive       TAS Family with Young Drivers    $ 403.83   96.35   85.00     11.35                 12 m       Either      $

Comprehensive       TAS Mature Drivers >60           $ 330.83   95.13   80.00     15.13                 12 m       Either      $
                                                SU




Comprehensive       WA Family with Young Drivers     $ 567.17   96.35   85.00     11.35                 12 m       Either      $


cashback
Comprehensive       QLD Mature Drivers >60           $ 438.83   95.13   80.00     15.13                 12 m       Either      $

Comprehensive       SA Mature Drivers >60            $ 419.33   95.13   80.00     15.13                 12 m       Either      $

Comprehensive       VIC Male Driver 25 - 29          $ 703.42   97.56   90.00     7.56                  12 m       Either      $

Comprehensive       VIC Mature Drivers >60           $ 535.58   95.13   80.00     15.13                 12 m       Either      $

Comprehensive       WA Mature Drivers >60            $ 465.58   95.13   80.00     15.13                 12 m       Either      $


ING Insurance
Comprehensive       SA Drivers 30 - 59               $ 391.92   98.90   90.00     8.90                   3y        Either               $

Comprehensive       SA Car Connoisseurs >30          $ 575.75   98.35   85.00     13.35                  3y        Either               $

Comprehensive       SA Female Driver 25 - 29         $ 474.75   98.86   89.96     8.90                   3y        Either               $

Comprehensive       SA Male Driver 25 - 29           $ 474.75   98.90   90.00     8.90                   3y        Either               $

Comprehensive       TAS Car Connoisseurs >30         $ 581.33   98.35   85.00     13.35                  3y        Either               $

Comprehensive       TAS Female Driver 25 - 29        $ 445.67   98.61   89.71     8.90                   3y        Either               $

Comprehensive       TAS Male Driver 25 - 29          $ 445.67   98.61   89.71     8.90                   3y        Either               $

Comprehensive       VIC Car Connoisseurs >30         $ 850.92   98.35   85.00     13.35                  3y        Either               $




your guide to product excellence
                                                                                                          Report Date: September, 2007
                                                                5 STAR SUMMARY:                                             Page 1 of 2
                        car insurance star ratings


All States
Text218:


All Profiles 5 Star Summary
                                                     Average     Total   Score Breakdown     Car Replaced if      Agreed or   Monthly Roadside
Product                Profile                                   Score                         Written-Off       Market Value Pmts -   Assist
                                                     Premium
                                                                                                                              no Extra
                                                                         Cost     Feature   Available   Age of                  cost
                                                                                                         Car


Just Car Insurance
Comprehensive Car      SA Young Male Driver <25       $ 699.33   96.75   95.00     1.75        $         N/A        Agreed      $        $

Comprehensive Car      TAS Young Female Driver <25    $ 549.50   96.75   95.00     1.75        $         N/A        Agreed      $        $

Comprehensive Car      TAS Young Male Driver <25      $ 564.00   96.75   95.00     1.75        $         N/A        Agreed      $        $

Comprehensive Car      VIC Young Female Driver <25    $ 797.33   96.75   95.00     1.75        $         N/A        Agreed      $        $

Comprehensive Car      VIC Young Male Driver <25      $ 820.67   96.75   95.00     1.75        $         N/A        Agreed      $        $


nab
Comprehensive          NSW Car Connoisseurs >30      $ 1451.00   98.71
                                                                          ED
                                                                         85.00     13.71                  2y        Either               $
                                                                  ED
Comprehensive          QLD Car Connoisseurs >30       $ 769.47   98.71   85.00     13.71                  2y        Either               $

Comprehensive          WA Car Connoisseurs >30        $ 667.52   98.71   85.00     13.71                  2y        Either               $
                                                                 C


NRMA Insurance
                                                           R



Comprehensive          NSW Female Driver 25 - 29     $ 1079.75   98.93   90.00     8.93                  24 m       Either      $        $
                                                     PE




Comprehensive          NSW Young Female Driver <25    $ 858.17   99.35   95.00     4.35                  24 m       Either      $        $

Comprehensive          NSW Young Male Driver <25      $ 898.67   99.35   95.00     4.35                  24 m       Either      $        $
                                                   SU




Comprehensive          QLD Female Driver 25 - 29      $ 545.42   98.93   90.00     8.93                  24 m       Either      $        $

Comprehensive          QLD Male Driver 25 - 29        $ 590.58   98.93   90.00     8.93                  24 m       Either      $        $

Comprehensive          QLD Young Female Driver <25    $ 501.17   99.35   95.00     4.35                  24 m       Either      $        $

Comprehensive          QLD Young Male Driver <25      $ 540.92   99.35   95.00     4.35                  24 m       Either      $        $


Ozicare
Comprehensive          QLD Drivers 30 - 59            $ 489.58   97.56   90.00     7.56                  24 m       Either      $

Comprehensive          TAS Drivers 30 - 59            $ 361.83   97.56   90.00     7.56                  24 m       Either      $


SGIC
Comprehensive          SA Young Female Driver <25     $ 580.75   98.54   94.47     4.06                  24 m       Either      $        $


SGIO
Comprehensive          WA Young Female Driver <25     $ 466.08   99.06   95.00     4.06                  24 m       Either      $        $

Comprehensive          WA Young Male Driver <25       $ 495.17   99.06   95.00     4.06                  24 m       Either      $        $


Westpac
Motor Plus Insurance   NSW Drivers 30 - 59            $ 894.42   99.09   89.98     9.11                  24 m       Either               $

Motor Plus Insurance   NSW Male Driver 25 - 29       $ 1132.58   99.11   90.00     9.11                  24 m       Either               $

Motor Plus Insurance   WA Male Driver 25 - 29         $ 542.25   99.11   90.00     9.11                  24 m       Either               $



your guide to product excellence
                                                                                                           Report Date: September, 2007
                                                                 5 STAR SUMMARY:                                             Page 2 of 2
                CANNEX star ratings methodology



        What are the CANNEX car insurance star ratings?


How are the ‘stars’ calculated?
The CANNEX car insurance star ratings calculations are based on a comparison of Costs (including the
average premium and the gap between the minimum and maximum premiums and any price difference
between premiums purchased online and on the phone) and scoring of the key features of the car insurance
policy (including No Claim Bonus, After Accident Care, Car Hire Information and Special Features).

                   COST SCORE ( C ) + FEATURES SCORE ( F ) = TOTAL SCORE ( T )

All car insurance policies that provided a quote for a particular profile are eligible to be included in the
comparison. The eligible car insurance products are assessed against these measures with the relative
competitiveness of each product recognised by the star rating awarded.

Consumers who search at www.cannex.com.au will find indicative average (and minimum/maximum)
premiums and ratings results for products matched to their profile. The results are reflected in consumer-
                                                             ED
friendly 5-star concept. The star ratings results are described as follows:
                                                  ED
                                                 C
                                             R
                                     PE




Profiles
                             SU




The car insurance star ratings methodology appreciates that car insurance policies are priced differently for
different types of drivers in different locations. In order to accommodate these differences, CANNEX has
identified eight unique driver profiles that reflect the majority of the spectrum of drivers (see below). Each
profile has different expectations of their car insurance policy and so the star ratings methodology assigns
different importance to fees and features for each profile.

As mentioned earlier, each profile is priced differently depending
on the location so each profile is compared by state. Six                        PROFILES
different Australian states are included in this analysis (New        YOUNG MALE DRIVER <25
South Wales, Queensland, South Australia, Tasmania, Victoria          YOUNG FEMALE DRIVER <25
and Western Australia).                                               MALE DRIVER 25 - 29
                                                                      FEMALE DRIVER 25 - 29
                                                                      DRIVER 30 - 59
It is intended that users of the car insurance star ratings report
                                                                      FAMILY WITH YOUNG DRIVERS
will identify the profile and state combination that most closely
                                                                      CAR CONNOISSEUR
matches their situation then use the star ratings results to short-   MATURE DRIVERS
list the car insurance policies best suited for their needs.




YOUR GUIDE TO PRODUCT EXCELLENCE                                                                          1
                CANNEX star ratings methodology


Costs (C)
In order to generate the premium quotes needed for the star ratings analysis, CANNEX generated thousands
of quotes for each profile (8 profiles, 6 postcodes per state, 2 cars per profile). These premiums are used to
determine the COST (C) component of each product’s overall score. Twelve quotes generated across 6 post
codes for 2 cars for each profile are condensed into an average premium.

Although research has shown that more and more people are using the internet to both quote for and
purchase their insurance, CANNEX appreciates that most consumers are not yet doing this and as a result
we have taken a weighted average of both the online and offline premiums to use in our comparison. At this
stage we are using a 60% – 40% weighting in favour of offline purchasing, but this weighting will adapt to
mirror the behaviour of the market place as it changes. It should also be noted that car insurance discounts
offered by new and existing companies are constantly changing. CANNEX has priced its premiums
according to the discounts that were available at the time of quoting. However, to ensure that the information
contained in this report is as up to date as possible, we have revised our reporting of the discounts offered to
reflect the current market place.



   COST SCORE ALL PROFILES
   PURCHASE PLACE       WEIGHT
                                                             ED
                                                  ED
BY PHONE OR BRANCH          60%
ONLINE                      40%
                                                 C


The resultant weighted average premium then contributes the bulk of the Cost Score (80%). The range of
                                             R



these premiums (Min – Max) reflects the consistency in pricing and contributes the balance (20%) of the
Cost Score.
                                     PE
                             SU




            COST SCORE ALL PROFILES

COST COMPONENTS                             WEIGHT
SCENARIO PREMIUM AVG                         80%
SCENARIO PREMIUM MIN:MAX RANGE *             20%
* NARROWEST PREMIUM RANGE SCORES 20% OF MAX COST
SCORE)




               PREMIUM SCORE ( 80% ) + RANGE SCORE ( 20% ) = COST SCORE ( CS )



Features (F)
Each car insurance product is awarded points for useful features available with the policy. The total features
score for each category of information (eg No claim Bonus or After Accident Care) is ranked and weighted
relative to its overall importance for each profile to calculate an overall Features Score (F). The features
information used are collected from car insurance policy product disclosure statements and are confirmed by
the insurers.




    YOUR GUIDE TO PRODUCT EXCELLENCE                                                              2
                  CANNEX star ratings methodology



                             YOUNG YOUNG                             FAMILY
                                            MALE FEMALE
                              MALE FEMALE                  DRIVERS WITH        CAR     MATURE
           DESCRIPTION                     DRIVER DRIVER
                             DRIVER DRIVER                  30 - 59  YOUNG CONNOISSEUR DRIVERS
                                           25 - 29 25 - 29
                               <25   <25                            DRIVERS
AFTER ACCICDENT CARE            30%    30%    20%      20%      20%     20%        20%     20%
CAR HIRE                        20%    20%    20%      20%      20%     20%        20%     20%
GENERAL POLICY CONDITIONS       20%    20%    20%      20%      20%     20%        20%     20%
SPECIAL FEATURES                20%    20%    20%      20%      20%     20%        20%     20%
NO CLAIM BONUS (NCB)             5%     5%    10%      10%      10%     10%        10%     10%
UNPROTECTED NCB STAYS INTACT     5%     5%    10%      10%      10%     10%        10%     10%




Weightings
The Costs and Features are weighted differently for each spending profile. This is done in recognition of the
appropriate importance to the different product components to each profile.

CANNEX has adjusted its car insurance star ratings methodology slightly to account for the differences
between what is important for each type of driver profile. The process considers each profile separately and
assigns weights representative of that profile (see table below). For the Young Female Driver for example,
                                                            ED
the cost component of the policy (including average premium and min-max range) contributes 95% of the
total score (as cost is most important to this driver profile) while features contribute the remaining 5%.
                                                 ED

The Cost Score (CS) plus Features Score (FS) are indexed and combined to provide the Total Score.
Together they form the basis of the CANNEX car insurance star ratings.
                                                C
                                           R



          PROFILES          COST WEIGHT FEATURE WEIGHT
                                    PE




YOUNG MALE DRIVER <25               95%               5%
YOUNG FEMALE DRIVER <25             95%               5%
MALE DRIVER 25 - 29                 90%              10%
                            SU




FEMALE DRIVER 25 - 29               90%              10%
DRIVERS 30 - 59                     90%              10%
FAMILY WITH YOUNG DRIVERS           85%              15%
CAR CONNOISSEUR                     85%              15%
MATURE DRIVERS                      80%              20%




    YOUR GUIDE TO PRODUCT EXCELLENCE                                                            3
                            CANNEX star ratings methodology


                                                          Across 11,000                              Phone Price          Avg Premium
                                                              quotes               Across all 8         60%                   80%
                                                            covering 6            profiles with 2
                                                           states with 6           cars for each
                                                                                      profile                              Price Range
                                                           postcodes in                             Internet Price
                                 Price                       each state
                                                                                                                               20%
                        Ranges from 80% - 95%                                                            40%


 CANNEX                                                                     After Accident Care
     car                                                                        20% - 30%
 insurance
     star                                                                        Car Hire
   ratings                                                                        20%

                               Features
                                                                       General Policy Conditions
                          Ranges from 5% - 20%
                                                                                 20%

                                                                              Special Features
                                                                                   20%

          PROFILES           COST WEIGHT FEATURE WEIGHT                    No Claim Bonus (NCB)
YOUNG MALE DRIVER <25
YOUNG FEMALE DRIVER <25
MALE DRIVER 25 - 29
                                     95%
                                     95%
                                     90%
                                                     5%
                                                     5%
                                                    10%
                                                                                ED
                                                                                 5% - 10%

                                                                     Unprotected NCB stays intact
                                                                ED
FEMALE DRIVER 25 - 29                90%            10%
DRIVERS 30 - 59                      90%            10%                       5% - 10%
FAMILY WITH YOUNG DRIVERS            85%            15%
CAR CONNOISSEUR                      85%            15%
                                                               C


MATURE DRIVERS                       80%            20%
                                                           R



                                                                        YOUNG YOUNG                             FAMILY
                                                                                       MALE FEMALE
                                                                         MALE FEMALE                  DRIVERS WITH        CAR     MATURE
                                                   DESCRIPTION                        DRIVER DRIVER
                                                 PE




                                                                        DRIVER DRIVER                  30 - 59  YOUNG CONNOISSEUR DRIVERS
                                                                                      25 - 29 25 - 29
                                                                          <25   <25                            DRIVERS
                                           AFTER ACCICDENT CARE            30%    30%    20%      20%      20%     20%        20%     20%
                                           CAR HIRE                        20%    20%    20%      20%      20%     20%        20%     20%
                                         SU




                                           GENERAL POLICY CONDITIONS       20%    20%    20%      20%      20%     20%        20%     20%
                                           SPECIAL FEATURES                20%    20%    20%      20%      20%     20%        20%     20%
                                           NO CLAIM BONUS (NCB)             5%     5%    10%      10%      10%     10%        10%     10%
                                           UNPROTECTED NCB STAYS INTACT     5%     5%    10%      10%      10%     10%        10%     10%




       Winners
       Our focus on car insurance products has resulted in a two-tier award system; each individual state and
       profile combination will have a product that receives a CANNEX five star rating but there will also be
       products whose cumulative performance across the states and profiles will earn them a National, State or
       Profile award of five stars. The enormous variance in car insurance products offered between states and
       even within states dictated this to be the fairest approach.

       To award three National winners CANNEX has looked not only at the number of first places won by a
       product, but also the second and third place wins. We have also taken into account the fact that each profile
       in each state contains a different percentage of the overall population of our surveyed driver types and that a
       first place is worth more than a second or third place. The ratio of weighting for first to second to third place
       is 3 : 2 : 1. Therefore a second placing is worth two-thirds of a first and a third place is worth only a third of
       the points of a first.

       The following table compiled using data sourced from the Australian Bureau of Statistics shows how each
       profile is weighted by population.


            YOUR GUIDE TO PRODUCT EXCELLENCE                                                                         4
                 CANNEX star ratings methodology

Population Distribution by State and Profile
                                    NSW          QLD         SA         TAS          VIC        WA
 Young Female Driver <25             2.509        1.473      0.536       0.164       1.816      0.747
 Young Male Driver <25               2.630        1.561      0.570       0.175       1.891      0.796
 Female Driver 25 - 29               1.588        0.873      0.302       0.088       1.146      0.444
 Male Driver 25 - 29                 1.630        0.906      0.325       0.089       1.161      0.460
 Drivers 30 - 59                     7.697        4.704      1.699       0.543       5.329      2.378
 Car Connoisseur                     5.132        3.136      1.133       0.362       3.553      1.585
 Family with Young Drivers           6.793        3.269      1.418       0.420       5.162      1.780
 Mature Drivers                      7.123        3.801      1.681       0.533       5.026      1.863
                                                               Source: CANNEX analysis of ABS statistics

By considering the rankings of each product and then awarding points based upon the number of first,
second and third places they received and the above population weighting of where those places were
received, CANNEX has found that Budget Direct, Cashback and Allianz are the National winners overall. As
you can see on the graph below, there is great variety in the amount of first, second and third placings
awarded to the major car insurers who operate in the national market.

The National Five Star winners are products that offer superior value for money for most consumers in most
states and profiles.
                                                               ED
                                       National 5 Star Awards
                                                   ED

                             Combined Online Purchase Price and Great Features
                                                  C
                                             R
                                     PE




                                                                                                  3rd Place

                                                                                                  2nd Place
                             SU




                                                                                                  1st Place




      Budget       Cashback        Allianz        Ozicare         NRMA           AAMI
      Direct                                                   Insurance
                                                                 /RACV/
                                                               SGIC/SGIO


Using the same methodology as the National Award but on a state basis, the insurer offering the best value
across all profiles (which are again weighted by their respective population size) was determined in each
state. For state winners, the top scoring product in each state was chosen as the winner.

The winners of the profile awards were calculated using a variation of the state methodology. The different
states were all given equal weighting because CANNEX deemed that for an insurer to be said to offer good
value for a particular driver profile across the nation, it was just as important for them to be good value in the
smaller states like Tasmania as it is in the heavy-weight states like New South Wales. Similarly, the top
scoring product in each profile was chosen as the winner.




    YOUR GUIDE TO PRODUCT EXCELLENCE                                                                5
                 CANNEX star ratings methodology



Does CANNEX rate other product areas?

YES. CANNEX also rates credit cards, rewards programs, mortgages, low-doc home loans, personal loans,
deposit accounts, package banking, business banking and margin lending products. The star ratings
methodologies used for these products is comparable in quality and transparency, ensuring of these other
star ratings. The use of similar star ratings logos also builds consumer recognition of quality products across
product categories. Please access the CANNEX website (http://www.cannex.com.au/starrate.html) if you
would like to download the latest CANNEX star ratings reports for the products of interest.




                                                                  ED
                                                     ED

DISCLAIMER
                                                    C


To the extent that any CANNEX data, ratings or commentary constitutes general advice, this advice has been prepared
by CANNEX (Aust) Pty Ltd ABN 21 053 646 165 AFSL 312804 and does not take into account your individual investment
                                                R



objectives, financial circumstances or needs.     Information provided does not constitute financial, taxation or other
                                       PE




professional advice and should not be relied upon as such. CANNEX recommends that, before you make any financial
decision, you seek professional advice from a suitably qualified adviser. A Product Disclosure Statement relating to the
product should also be obtained and considered before making any decision about whether to acquire the product.
                               SU




Please refer to CANNEX’s FSG for more information at www.cannex.com.au.




    YOUR GUIDE TO PRODUCT EXCELLENCE                                                                      6

				
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